Selling Your Electric Vehicle Tips for Getting the Best Price

By Isabella Storyclaire

last updated September 17, 2024

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How to Get the Best Deal on a Car

Buying a car is a major financial investment, and today's auto market can be especially intimidating to buyers. Cars are in demand, prices are high, and interest rates are steep. That's why it's more important than ever to know how to negotiate when buying a car.

Because dealerships have plenty of strategies to maximize their profit, you should come ready with strategies of your own. Equipping yourself with knowledge, negotiation skills, and bargaining power could help you get a lower car price, a better car, and more manageable loan terms.

Whether you're shopping new or used, and whether you're buying from a seasoned car dealership or a stranger you met online, approach your negotiations with confidence and plenty of hard data. In this article, we'll share some tips for getting the best deal on the car you want.

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What Can You Negotiate When Buying a Car?

You can't negotiate every part of your car purchase, but you can negotiate a lot of things. Here are some of the factors that you can often negotiate when buying a new or used car.

Vehicle Price

The most important item you can negotiate is the purchase price. Dealers usually base their asking price on the Manufacturer's Suggested Retail Price (MSRP), which is the price the automaker considers fair for the vehicle. But you might not always pay the MSRP.

Dealer mark-ups and demand in your local market can influence the car price you see at the dealership. However, you can always try to negotiate a lower base price, and you should.

Some dealerships won't budge. Some even market themselves as no-haggle dealerships, meaning they don't negotiate the sticker price at all. But it never hurts to try.

Interest Rate

If you plan to finance your car, you can negotiate the terms of your loan, especially your interest rate. According to the Consumer Finance Protection Bureau, dealers don't always offer their lowest rate first.

In fact, they usually do the opposite. Even if you're getting financing from a lender outside the car dealership, get multiple quotes and use them as leverage to get the best possible interest rate from whatever lender you choose.

Fees

Dealerships usually tack on a host of fees when you buy a car. These might include document fees, freight fees, and advertising fees. Some dealers also charge fees for inspection and preparation.

Basically, you pay for the car to be in good condition. You can sometimes convince dealers to waive some of these dealer fees or lower the vehicle price to compensate for them, especially if you have a good argument.

Insurance and Warranties

Some dealers might try to sell you extra insurance policies, like gap insurance or credit insurance, by implying that they're mandatory. In reality, these policies are usually not required unless you're leasing. If your lending company requires additional insurance, you'll usually get a better deal on it outside the dealership.

The dealer might also try to sway you toward purchasing an extended warranty. They might point out inadequacies in your manufacturer warranty and emphasize the importance of additional coverage that kicks in after your original warranty expires.

You can (and probably should) wait to buy any additional warranties. Research your options, learn more about the companies that offer them, and decide whether you really need one.

Trade-In Value

If you're selling your current car too, it's important that you get a fair offer on it. Always estimate your car's value using a reputable site before you arrive. Be honest with yourself about the car's condition, though. Damage, even minor cosmetic damage, can make a serious dent in your vehicle's value. Note imperfections like:

Scratches on wheels
Alterations to the body
Paint chips or dents (even if you fixed them)
Heating or air conditioning issues
Loss of tire tread
Interior odors
Stained or worn seats
Unresponsive electronics
Issues with the title

Tips for Getting the Best Deal on a Car

Use these tips to increase your chances of getting a great deal on a car in the current market:

Research Dealerships

Before you set foot on the dealership lot, do plenty of research beforehand. Read about different dealerships in your area and learn about your local market. Consider reading reviews of each car dealership from people who bought cars there. They might contain valuable information about their sales tactics and negotiation styles.

Stay Objective

Buying a car is a big decision, and you will probably feel a variety of mixed emotions. Car shopping can be stressful, frustrating, exciting, and exhausting all at once. But most people make better decisions when they're clear-headed.

Try to filter out emotions that may cloud your perception of the cars on the lot and the offers dealers make. React logically and take your time.

Work with a Variety of Dealers

Make dealerships compete for your business. Not only can competing offers give you negotiating power, but they also give you a clearer view of the market. You might expect to work with a dealer you trust only to learn there's a better price elsewhere. Shop around and be flexible.

Shop at the End of the Month

Consider visiting the dealership at the end of the month. Car salespeople sometimes have to sell a certain number of cars by the end of the month, quarter, or year. If you show up on September 28 and catch a salesperson who's desperate to meet their quota, they might go for a lower price than they would on October 1. This method isn't foolproof, but it could be worth trying if you can wait.

Research Incentives

If you're interested in several makes and models, do some research to see if any of the manufacturers are offering incentives, like 0% APR for the first year or cash-back incentives where you can earn a rebate on your purchase.

There are also sometimes special promotions that apply to specific groups, like military members or students. Research all manufacturer or dealer incentives that you might qualify for to ensure you get the lowest price possible.

Focus on Price over Payment

The dealer may use a low monthly payment as bait for you to pay more than you really should. If you want to save money in the long term, push for a lower purchase price, not a lower monthly payment.

A low monthly payment often just means you have a long-term loan, which costs you more in interest and increases your risk of developing negative equity as your vehicle depreciates.

Get Pre-Approval for Your Financing

Work with a lender beforehand to get pre-approval for an auto loan. Talk with banks, credit unions, and online lenders to find the best interest rate available to you.

This saves you the time, energy, and money you might spend working with the dealership's finance team. Plus, you will have a pre-allotted budget for your car. Shiny new features and optional upgrades can't tempt you if your loan won't cover them.

Know the Invoice Price

The invoice price is the amount the dealer paid the manufacturer for the car. It's useful to know this figure in addition to the MSRP because it's how the dealer calculated their sticker price.

They start at the invoice price and mark it up to earn a profit. You can usually find the approximate invoice price for the make, model, and year you're targeting on a site like KBB.

Trade-in Your Current Vehicle

The upside of the current auto market's dire condition is that your car might have spiked in value. If you're selling or trading in your vehicle, you can apply its value to the price of your new car. But approach your trade-in cautiously. To take advantage of the market conditions, it's best to separate trade-in negotiations from new car negotiations.

For example, the dealer can use your car's trade-in value to make their deal look better than it is. They could make you a great offer on your trade-in just to inflate the price of the new car. It might even be worthwhile to sell your car on your own before you go to the dealership. That way, you can maximize your payout and focus on negotiating the actual price of the car in front of you at the dealership.

Don't Spring for Add-ons

Dealers usually try to make extra money by pitching optional add-ons. These extras are usually unnecessary and can drive up the price of the car significantly. Say no to things like tire protection plans, anti-theft protection, infotainment upgrades, and VIN etching. Like extra insurance policies and warranties, if you really want these add-ons, you can buy them later.

Start Low

When negotiating with a dealer, your first offer should be the lowest you want to go. Don't blurt out an unreasonably low number, though. You want to show the dealer you know what you're talking about and want a fair price.

Start with an offer that's at the lower end of your budget, and is based on your research. The dealer usually counters your first offer at a higher price, and hopefully, you'll be able to agree on a price somewhere in the middle.

Schedule an Inspection

You should know everything about a car before you buy it. Take the car to a mechanic for an inspection before you sign anything, especially if it's used. Dealerships typically inspect cars themselves, but it helps to arm yourself with extra information from third-party mechanics who have no personal stake in the sale. If they find unreported issues, you might bring them back to the dealer as a reason for a lower purchase price.

Say No if You Have to

Any skilled negotiator knows when the deal is off. Know what your boundaries are before you start negotiations, and walk away if the dealer can't meet them.

Don't let the salesperson convince you that your boundaries are unrealistic or unimportant, either. If you did your research carefully, you probably know what's out there and where to find it. Move on if they can't offer you a satisfactory deal.

How to Get a Good Deal with a Private Seller

Car dealerships aren't the only options, especially if you're open to buying a used car. You could also buy a car from an independent third-party seller.

One of the benefits of working with a private seller is that they may want or need to sell their car quickly, and are more willing to negotiate. The downside is that they have fewer incentives to close the sale. If you can't offer the price they're looking for, they might be happy to let you walk away.

However, it's still possible to negotiate with a private seller to get a great deal on a car you love. Most of the same advice applies here. Do your research, request a vehicle history report, and start with your lowest offer. If you plan on buying from an independent seller instead of a dealer, here are some things to consider:

Make a cash offer: You typically have to pay cash when buying a car from a private seller instead of financing your purchase. While you might pay a lower price overall, you will have to pay it in a lump sum.
Schedule an inspection: When buying from an individual, you don't get the same quality control measures you'd get at a dealer. Have a mechanic inspect the car before buying it.
Avoid scams: Private party vehicle sales can be scams. Be wary when working with independent sellers, and never give your financial information to a stranger.
Check the VIN: If the car's price is unbelievably low, there might be a reason. Check the car's VIN with your local Department of Motor Vehicles (DMV) to make sure there are no liens on the car and that it rightfully belongs to the seller.

Elizabeth Rivelli is a freelance writer with more than three years of experience covering personal finance and insurance. She has extensive knowledge of various insurance lines, including car insurance and property insurance. Her byline has appeared in dozens of online finance publications, like The Balance, Investopedia, Reviews.com, Forbes, and Bankrate.

What You Need to Know Before Buying a Used Electric Car

Shopping for a used electric vehicle can be an attractive alternative to buying new. For some budgets, the used-car market is the only realistic place to find an EV: Only a few new electric cars are available for under $30,000, and the lowest-cost option is nearly $10,000 more than the most affordable gas-powered cars.

In addition to thinking about price, shoppers looking for a used EV may have EV-specific questions, particularly about the batteries, how long they last and the cost to replace them.

Used EVs are cheaper than new, but be realistic

A handful of new EVs cost less than the average new car, but average $44,585 as of November 2022, according to Kelley Blue Book doesnt necessarily mean affordable. And yes, car prices recently have decreased a smidge, but rising interest rates counteract much of that, leading to stubbornly high monthly payments for anyone who finances their purchase.

So how much can you save on a new EV?

Recent Edmunds data shows that EVs less than two years old a market dominated by Teslas and car flippers were listed for an average price of $58,179 in late 2022, says Ivan Drury, senior manager of insights for autos site Edmunds.com. That might not be the bargain youre hoping for.

But if you look at slightly older models, youll see bigger savings. A four-year-old EV cost an average of $30,400.

So instead of lumping all used EVs together, consider the specifics of the particular EV youre looking at and how much youre willing to pay for it. If you can find an older EV with a battery in good shape, it could be a bargain, says Drury. But if you buy an EV that is being flipped at a premium that doesnt qualify for a tax credit, it could be a value trap cheaper than a new EV, but not worth the price you pay.

Factor in possible savings from buying a used EV

While used EVs cost more than gas-powered cars with the average transaction price at about $41,000 you have to look at the total cost of ownership, says Jesse Toprak, chief analyst for Autonomy, an EV subscription service. For example, he says driving an EV could save as much as $5,000 in gas costs in one year.

EVs can also save money in the long run due to:

Incentives and rebates. State and federal incentives might effectively reduce the price of a used EV. For example, the Inflation Reduction Act lets you recover up to 30% of the sale price, up to $4,000, on eligible used EVs.
Maintenance savings. The cost of upkeep on an EV is generally lower than upkeep for a gas-powered car. EVs dont require oil changes, and they have fewer parts, which means fewer things that can break. EVs also use regenerative brakes, which recapture energy, so their brake pads wear out slowly.

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